Sbarro Pizza Preparing Chapter 11 Filing

Wall Street Journal ^ | 04/01/2011 | MIKE SPECTOR

[iowamark]

Sbarro Inc., the fast-food pizza chain that dots shopping-mall food courts, is preparing to file for Chapter 11 bankruptcy protection as soon as next week, said people familiar with the matter...

"Sbarro continues to work constructively with our key stakeholders to restructure our debt and position the company for long-term success," the company said. "Throughout this restructuring process, the company expects to continue to operate in the normal course and without interruption."

The company has been battered during the recession amid lower consumer confidence. Several months ago it warned of substantial doubt about its ability to continue as a going concern...

Sbarro, based in Melville, N.Y., employs about 5,000 people and started cutting jobs and closing stores in the wake of the global financial crisis...

The eatery was founded in the late 1950s when the Sbarro family opened a grocery store in Brooklyn, N.Y., offering homemade mozzarella, imported cheese, sausage and salami. Sbarro opened its first mall location in 1967 in Brooklyn's King Plaza Shopping Center, which marked its transition to fast-food service. It grew to operate more than 1,000 stores in some 40 countries, becoming a staple in malls and airports from Egypt and Israel to Japan and New Zealand.

Battered by the recession, however, the company closed more than 150 restaurants in the past two years. It showed a loss of about $29.3 million during the first nine months of last year on sales of roughly $239 million. For 2009 it reported a loss of $ 37.2 million. It had about $12.67 million cash and cash equivalents at the end of September.

The losses prompted the company in December to raise salaries and hand out bonuses for top executives and managers to keep them from leaving. Meantime, Sbarro's lackluster earnings caused it to violate debt terms.

[Tzimisce]

Welcome to Obama’s America.

Now pay your taxes. They need raises. :D

[apillar]

I'll run against the tide a bit and say I like their “stuffed” pizza, which is essentially a pizza with both a top and bottom crust with the toppings in the center. I will agree that most of their food is massively overpriced, I had my two kids at the mall and they had a couple friends with them, when we decided to grab something to eat, I ordered a Large stuffed pizza with five drinks, it came to just shy of $50. For half that I could have gotten 2 larges and drinks at the local Pizza Hut...

[buccaneer81]

A buddy of mine works at a Goodyear store. He says that they get a lot of business these days from people who had bought used tires from junkyards and then needed those ones replaced shortly afterwards.

Two things I would never buy used are tires and mattresses. I'm sure there are a hundred others, but those two are at the top of the list.

[khnyny]

The ones I was posting about have never seen anything close to combat “asshole” (turn about is fair, lol). There is a real distinction which you apparently have failed to recognize - unless of course you yourself are one of the ones who have benefited from the gravy train... in which case I can understand your faux outrage. :)_

[MinorityRepublican]

Good memories. I remember spending my allowence on sbarro pizza. Boy it was worth it.

[khnyny]

See post 44 -
I have known too many officer level military who treat it like a business - they calculate the cost/benefit to themselves. They historically are NOT in combat zones and are in it for, imho, their own gain. Retire after 20 years and get lucrative gov contracts. I have personally seen them get hundreds of thousands of dollars per month as a “consultant”. Get real.

[stayathomemom]

I'll run against the tide a bit and say I like their “stuffed” pizza,

I do too. Maybe, before they are going under, I will actually treat myself to an entire piece. I feel too guilty eating a whole slice myself, so I always give a portion of it to my husband.

[KantianBurke]

You made no such mention in your original post:

“Our costs for military salaries and pensions are
astronomical.”

The criticism stands against your comments stand- the vast majority of our military has been fighting some brutal battles over the past decade. They deserve every penny and benefit. If you know some slugs that are milking the system I suggest you find some new friends. But to offer, as you made clear in your original post without any quantifiers, that those who serve are akin to welfare deadbeats is obnoxious.

[texas booster]

Shopping malls are under tremendous pressure and are dying out in many cities.

Part of it is the outrageous rents that they can charge in the most upscale malls, and part of it is the overbuilding of malls.

Biggest reason is the population movement across urban areas. Once a mall becomes known as crime ridden it can fall very fast, no matter how many police patrols they have.

[Graybeard58]

as you made clear in your original post without any quantifiers, that those who serve are akin to welfare deadbeats is obnoxious.

I've seen bannings for less obnoxious comments about our military.

[mylife]

Our little mall in tiny town Texas cant keep tenants, so we run gun shows in there now.

Mmmmm Pizza and guns...

[buccaneer81]

Spot on. There are only three malls left in the Columbus area that haven’t degenerated into ghetto holes.

[mylife]

Ive definitely seen blanket parties for less.

[boop]

Sbarros makes the whole food court smell good. I’ve only eaten there a few times, but it is tasty.

[martin_fierro]

[buccaneer81]

I have known too many officer level military who treat it like a business - they calculate the cost/benefit to themselves.

Yeah, I'm sure that's what my Dad was thinking as he was flying BUFFs and dodging SAMs over Hanoi. /sarc

[rlmorel]

LOL...now THAT’s funny!

[stuck_in_new_orleans]

Same here. Loved their stuffed pizza and garlic roll. I also find it funny with people saying it’s bad. Hell, all pizza is bad for you. It’s like saying my poison is better than your poison.

[buccaneer81]

I also find it funny with people saying it’s bad.

Bad quality. Big chain pizza of any kind is awful. The local joints are the best.

[StormEye]

"Wow! I have rarely seen so many people despise a pizza."

I love pizza. I hate Sbarro pizza! I tried an over priced slice of their crappy pizza for the first time last year at Arundel Mills Mall in Hanover, Md. Yes, I'm naming the establishment -- boo hoo. I took one small bite and asked a friend to sample it too. He agreed - the most awful foul pizza he'd ever tasted. I just threw it out and didn't want to waste any the time trying to get my money back. Just chalked it up to experience. I'll never eat anything from Sbarro again. Now you know why they're going bankrupt.